JPMorgan plans contingent interest autocallables tied to three stocks

By Toni Weeks

San Luis Obispo, Calif., Aug. 20 – JPMorgan Chase & Co. plans to price autocallable contingent interest notes due Aug. 31, 2016 linked to the least performing of the common stocks of Cisco Systems, Inc., Coca-Cola Co. and Verizon Communications Inc., according to an FWP filing with the Securities and Exchange Commission.

If each stock closes at or above the interest barrier level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of at least $25.00 per $1,000 note for that quarter. The payment is equivalent to 10% per year and will be set at pricing.

If the closing share price of each stock is greater than or equal to its initial share price on any quarterly review date other than the final date, the notes will be automatically called at par plus the contingent payment.

If the notes are not called and the final share price of each stock is greater than or equal to the 75% trigger level, the payout at maturity will be par plus the contingent interest payment. If the final share price of any stock is less than the trigger price, investors will receive a number of shares of the least-performing stock equal to $1,000 divided by that stock’s initial share price or, at the issuer’s option, the cash value of those shares.

J.P. Morgan Securities LLC is the agent.

The notes (Cusip: 48127DXQ6) will price Aug. 26 and settle Aug. 29.

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